Which sections of the Income Tax Act does Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 250, Section 143(3), Section 41(1), Section 14A, Section 40(a)(ia), Section 37(1).

Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

Q: How many judgments cite Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT?

621 judgments on BharatTax cite Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (227 ITR 172), spanning 2007 to 2026.

227 ITR 172Supreme Court of India1997#96 most cited

What is Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT authority for?

Interest income earned on deposits, particularly before the commencement of business operations or as a requirement for business licensing, is taxable as "income from other sources" under Section 56, and cannot be treated as business income or set off against interest on borrowed funds.

621

judgments rely on this decision, according to BharatTax’s citation analysis of 371,889 Indian tax judgments — from 2007 to 2026.

Also referred to as

Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT · 227 ITR 172 · Section 28 · Section 56 · Section 57 · income from other sources · business income · interest income · commencement of business · capitalization of interest · year of expenditure claim

Also reported as

141 CTR 387

Sections most often in play

Section 250 Section 143(3)Section 41(1)Section 14A Section 40(a)(ia)Section 37(1)Section 147 Section 28(iv)

Issues it is cited on

section 57 profits and gains of business or profession section 56 section 32 revenue expenditure income from other sources section 28 section 37(1)capital expenditure section 43 section 37 previous year

Judgments citing Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

L&T Sucg Jv CC27, New Delhi vs. Addl.CIT, Range-62, New Delhi

In the result, appeal of the Department is dismissed

ITA 4351/DEL/2018[2014-15]Status: DisposedITAT Delhi10 Jul 2019AY 2014-15

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: Shri Saurabh Goel, C.As And Shri Nirbhay MehtaFor Respondent: Shri J.K. Mishra, CIT-DR

…t does not recognise hypothetical or notional income which is not received or accrued to the assessee. We rely upon Judgments of Hon’ble Supreme Court in the cases of Sutlez Cotton Mills vs. CIT 116 ITR 1 (SC); Tuticorin Alcali Chemicals and Fertilizers Ltd., 227 ITR 172 (SC) and Godhra Electricity Co. Ltd., 225 ITR 746 (SC). If this addition is considered in assessment year under appeal and stock position is taken differently, it has to be given effect in closing stock of this year, resultantly, opening stock of next assessment year would be enhanced by same amount. It would be tax neutral exercise only. The exp…

M/S Udupi Power Corporation Limited, Bangalore vs. The Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

In the result, both the appeals of the assessee are treated as partly allowed for statistical purposes

ITA 1202/BANG/2017[2012-13]Status: DisposedITAT Bangalore26 Jun 2019AY 2012-13

Bench: Shri N.V Vasudevan, Vice Presidnet & Shri B.R Baskaran

For Appellant: Shri Vijay Ranjan, AdvocateFor Respondent: Shri Pradeep Kumar, CIT

Section 14A

…took the view that the income earned by the assessee from inter-corporate deposit is assessable as ‘income from other sources’ as per the decision rendered by the Hon’ble Supreme Court in the case of Tuticorin Alcoholic Chemicals and Fertilizers Ltd., Vs. CIT 227 ITR 172. Accordingly he assessed the interest income of Rs.31. 08 crores as income of the assessee under the head ‘income from other sources’ and did not allow deduction of interest expenditure. The ld CIT(A) also rejected the claim of the assessee for set off of interest income against the interest expenditure and accordingly confirmed the action of the…

Shri Nagendra Choudhary, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-2, Jaipur

In the result, appeal of the assessee is allowed

ITA 611/JPR/2018[2014-15]Status: DisposedITAT Jaipur10 Jun 2019AY 2014-15

Bench: The Tribunal. Only When The Assessee Enquired About

For Appellant: Shri S.L. Jain (Advocate) &For Respondent: Shri Rajendra Jha (Addl. CIT)

Section 271A

…rofits and gains of business. That does not mean that until and unless the assessee commences its business, its income from any other source will not be taxed as held by the Hon’ble Supreme Court in the case of Tuticorin Alkali & Chemicals Ltd. Vs. CIT (1997) 227 ITR 172 (SC). It has been further held that when the question is whether a receipt of money is taxable or not or whether certain deduction from that receipt is principles of law and not in accordance with accountancy practice. Further, the Hon’ble Apex Court held that the question as to whether a principal receipt is of the nature of income and falls wit…

JCIT (OSD), New Delhi vs. M/S. Imperative Hospitality Pvt. Ltd., New Delhi

ITA 1763/DEL/2016[2012-13]Status: DisposedITAT Delhi10 Jun 2019AY 2012-13

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Ms. Paramita M. Biswas, CIT DR

Section 143Section 143(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’ : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.1763/Del./2016 (ASSESSMENT YEAR : 2012-13) JCIT (OSD), vs. M/s. Imperative Hospitality Pvt. Ltd., Circle 12 (1), 90, Bangla Sahib Road, New Delhi. New Delhi – 110 001. (PAN : AABCI6836L) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Gautam Jain, Advocate Shri Lalit Mohan, CA REVENUE BY : Ms. Paramita M. Biswas, CIT DR Date of Hearing : 03.06.2019 Date of Order : 10.06.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : Appellant, JCIT (OSD), Circle 12 (1), New De…

Assistant Commissioner of Income Tax, Circle 6(2)(2), Mumbai vs. Essar Power Transmission Company Limited, Mumbai

In the result, Ground No.1 of the Revenue’s appeal is dismissed

ITA 398/MUM/2018[2013-14]Status: DisposedITAT Mumbai06 Jun 2019AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Sandeep Gosainआयकर अपील सं./I.T.A. No. 397/Mum/2018 ("नधा"रण वष" / Assessment Year : 2013-14)

For Respondent: Shri Anuj Kisnadwala, A.R

…ery. Hence, any income earned on such deposit is incidental to the acquisition of assets for the setting up of the plant and machinery. In this view of the matter the ratio laid down by this Court in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [19971 227 ITR 172, will not be attracted. The more appropriate decision in the factual situation in the present case is in CIT v. ITA Nos. 397 to 399/Mum/18 [ACIT vs. M/s. Essar Power Gujarat Ltd. & Anr.] - 8 - Bokaro Steel Ltd. [1999] 236 ITR. 315 (SO, The appeal is dismissed. There will be no order as to costs. 20. As can be seen from the above, the Hon'ble Sup…

Assistant Commissioner of Income Tax, Circle 6(2)(2), Mumbai vs. Essar Power Gujarat Limited, Mumbai

In the result, Ground No.1 of the Revenue’s appeal is dismissed

ITA 397/MUM/2018[2013-14]Status: DisposedITAT Mumbai06 Jun 2019AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Sandeep Gosainआयकर अपील सं./I.T.A. No. 397/Mum/2018 ("नधा"रण वष" / Assessment Year : 2013-14)

For Respondent: Shri Anuj Kisnadwala, A.R

Ajb Developers Pvt. Ltd., New Delhi vs. DCIT, Circle- 2(1), New Delhi

In the result, appeal of Assessee allowed

ITA 7386/DEL/2018[2014-15]Status: DisposedITAT Delhi27 May 2019AY 2014-15

Bench: Shri Bhavnesh Saini, J.M. & Shri L.P. Sahu, A.M.

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri P.V. Gupta, Sr. D.R

Section 115JSection 2(14)Section 45

…way or the other. What is necessary to be considered is the true nature of the transaction and whether in fact it has resulted in profit or loss to the assessee.” 6.2. The Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd., 227 ITR 172 (SC) in which it was held as under : “Book entries are not determinative of income of assessee. When the question is, whether a receipt of money is taxable or not, or whether certain deductions from that receipts are permissible in Law or not, the question has to be decided according to the Principles of Law, but not in accordance with the Accou…

ACIT 33(2), Mumbai vs. Manish P Gandhi, Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 7474/MUM/2014[2006-07]Status: DisposedITAT Mumbai24 May 2019AY 2006-07

Bench: Shri Sandeep Gosain () & Shri G Manjunatha () Acit-33(2), Mumbai Vs Shri Manish P Gandhi 2302, Challenger Tower-1, Thakur Village, Kandivali East, Mumbai 400 101 Pan : Aacpg3600N Appellant Respondednt

Section 143(3)Section 88E

…uency / turnover within short span reflects nothing but intention of the assessee to engage in business. The Ld.DR further submitted that the grouping / accounting entries are not conclusive one as held in the case of Tuticorin Alkalies Chemical Ltd vs CIT 141 CTR 387(SC) and that what is relevant is the nature of income which is to decide the head of income under which it is taxable. The Ld.CIT(A) has failed to observe the findings of Hon’ble High Court in the case of CIT vs Storewell Credits and Capital Pvt Ltd in Income Tax Appeal No.1048 of 2012 where it was observed that while admitting the appeal, the…

ITO, New Delhi vs. M/S. Citi Financial Cosumer Finance India Ltd., New Delhi

ITA 2638/DEL/2016[2009-10]Status: DisposedITAT Delhi23 May 2019AY 2009-10

Bench: Shri N.K. Billaiya & Shri Kuldip Singhito, Ward 6 (2), Vs. M/S. Citi Financial Consumer Finance New Delhi. India Ltd., 3, Local Shopping Centre, Pushpa Bhawan, Pushp Vihar, New Delhi – 110 062. (Pan : Aabca3223B) (Appellant) (Respondent) Assessee By : Shri C.S. Agarwal, Senior Advocate Shri Shailesh Gupta, Advocate Revenue By : Shri H.K. Choudhary, Cit Dr Date Of Hearing : 02.05.2019 Date Of Order : 23.05.2019

For Appellant: Shri C.S. Agarwal, Senior AdvocateFor Respondent: Shri H.K. Choudhary, CIT DR

Section 143Section 92C

…sive one way or the other. What is necessary to be considered is the true nature of the transaction and whether in fact it has resulted in profit or loss to the assessee. " 25.5. Likewise, in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd vs. CIT,227 ITR 172(SC),Hon'ble Supreme Court held that "It is true that this court has very often referred to accounting practice for ascertainment of profit made by a company or value of the assets of a company. But when the question is whether a receipt of money is taxable or not or whether certain deductions from that receipt are permissible in law or not, the q…

ITO 2(1)(1), Mumbai vs. Aaa Technologies P.Ltd, Mumbai

ITA 3455/MUM/2017[2012-13]Status: DisposedITAT Mumbai17 May 2019AY 2012-13

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Vipul JoshiFor Respondent: Shri Abdul Hakeem M

Section 143(3)Section 148

…duly offered to tax by the Assessee in its return of income, by way of netting the receipt and expenditure incurred by the non-residents. 44. As held by the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ld. v/s. CIT - [(1997) 227 ITR 172 (SC)] treatment of income in books of accounts cannot override the provisions of the Act. Thus, an expense cannot be disallowed merely due to wrong presentation in books of accounts. 45. In the case of GE India Technology P. Ltd. v/s. CIT - [(2010) 327 ITR 456 (SC)] the Hon'ble Supreme Court held that if no services were rendered in India, no TD…

ITO 2(1)(1), Mumbai vs. Aaa Technologies P.Ltd, Mumbai

ITA 3454/MUM/2017[2009-10]Status: DisposedITAT Mumbai17 May 2019AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Vipul JoshiFor Respondent: Shri Abdul Hakeem M

Section 143(3)Section 148

Nirmal Infrastructure Private Limited, Mumbai vs. Deputy Commissioner of Income Tax - Central Circle 3(1), Mumbai

In the result, these appeals by the assessee stand allowed

ITA 1012/MUM/2018[2008-09]Status: DisposedITAT Mumbai16 May 2019AY 2008-09

Bench: Shri Shamim Yahya (Am) & Shri Ramlal Negi (Jm)

Section 153ASection 271(1)(c)

…the interest earned on fixed deposit with the interest paid and has adjusted the resultant amount in the work in progress. The assessing officer was of the opinion that in view of the honourable apex court decision in the case of Tuticorin Alkali & Chemicals 227 ITR 172 (SC), the interest on fixed deposit was to be shown as income from other sources. The assessee agreed for the same. The assessing officer also initiated penalty for furnishing of inaccurate particulars of income. In the notice issued for the initiation of penalty the relevant limb of the specification of charge was not identified. 4. In the pena…

The ACIT, Cochin vs. M/S.Ptl Enterprises Ltd, Cochin

In the result, the appeals filed by the Revenue are dismissed

ITA 162/COCH/2017[2013-14]Status: DisposedITAT Cochin06 May 2019AY 2013-14

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Alok MitraFor Respondent: Sri.Abraham Joseph Markose

Section 56(2)(ii)

…segment of the assessee is an irrelevant consideration. It is well settled principle that treatment in books of accounts is not determinative of the nature and taxability of income as held in the case of Tuticorin alkali Chemicals and Fertilizers Ltd. v. CIT 227 ITR 172 (SC) and Kedarnath Jute Mfg. Co. Ltd. v CIT 82 ITR 363 (SC). 8.27 For the sake of completeness, it is stated that it is well settled law that if there is a new ground or a material change in the factual and legal position precedents do not have binding character. In the case of Bharat Sanchar Nigam Ltd. v UOI WP (Civil) 183/2003 (SC), it was note…

The ACIT, Cochin vs. M/S.Ptl Enterprises Ltd, Cochin

In the result, the appeals filed by the Revenue are dismissed

ITA 161/COCH/2017[2012-13]Status: DisposedITAT Cochin06 May 2019AY 2012-13

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Alok MitraFor Respondent: Sri.Abraham Joseph Markose

Section 56(2)(ii)

The ACIT, Cochin vs. M/S.Ptl Enterprises Ltd, Cochin

In the result, the appeals filed by the Revenue are dismissed

ITA 160/COCH/2017[2011-12]Status: DisposedITAT Cochin06 May 2019AY 2011-12

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.Alok MitraFor Respondent: Sri.Abraham Joseph Markose

Section 56(2)(ii)

M/S. Rachna Enterprise, Surat vs. The Dy. Commissioner of Income Tax, Central Circle-1, Surat

In the result, the appeal of the assessee is allowed

ITA 1889/AHD/2016[2014-15]Status: DisposedITAT Surat30 Apr 2019AY 2014-15

Bench: Shri.Ram Lal Negi & Shri O.P.Meenaआ.अ.सं./I.T.A. No.1889/Ahd/2016 िनधा"रणवष"/Assessment Year : 2014-15 M/S. Rachna Enterprise, Vs. Dcit, Central Circle-1, Aaykar T.P No. 31, F.P. No. 31, Adajan Main Road, Bhavan, Majura Gate, Surat Surat-395009. [Pan: Aaofr 0215 L] अपीलाथ" Appellant ""यथ"/Respondent िनधा"रतीक"ओरसे /Assessee By Shri Rasesh Shah, Ca Shri Dilip Kumar, Sr. D.R. राज"वक"ओरसे /Revenue By सुनवाईक"तारीख/ Date Of Hearing : 26.03.2019 30.04.2019 उ"ोषणाक"तारीख/Pronouncement On : आदेश /O R D E R Per O. P. Meena Am: 1. This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-4, Surat [In Short “The Cit(A)], Dated 28.06.2016 Pertaining To The Assessment Year 2014-15. 2. The Grounds Raised By The Assessee As Under: “1. On The Facts & Circumstances Of The Case As Well As Law On The Subject, The Ld. Cit(As) Has Erred In Enhancing The Assessment By Disallowing The Interest To The Extent Of Rs.46,36,800/- By Erroneously Holding That It Is Required To Be Capitalized To The Work In Progress. 2. It Is Therefore Prayed That Enhancement Made By Ld. Cit(Appeals) May Please Be Deleted.”

Section 133ASection 143(3)

…ced every year against the cost of the units sold. Thus, the project of the assessee was completed to the extent of 72%. We further find that AS-16 overrides the law as held by Hon’ble Supreme Court in case of Tuticorin Alkali Chemicals & Fertilizers v/s. CIT-141 CTR 387 (SC). We further find that enhancement made by the Commissioner of Income-tax (Appeals) is made without Rachna Enterprise vs. DCIT, Central Circle-1, Surat/ITA No.1889/Ahd/2016/A.Y: 2014-15 Page 9 of 9 giving proper show-cause notice and without making necessary enquiries as per the provisions of Section 250(4) of the Act. Thus, considering th…

Hyundai Capital India Pvt. Ltd., New Delhi vs. ITO, Ward- 11(4), New Delhi

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 6700/DEL/2017[2013-14]Status: DisposedITAT Delhi30 Apr 2019AY 2013-14

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2013-14

For Appellant: Shri Salil Kapoor &For Respondent: Shri Surender Pal, Sr. DR

…as purchased on 26th March, 2013 which is verifiable. Therefore, this document is nothing, but, a self serving document. Referring to the decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT, reported in 227 ITR 172, the ld. DR drew the attention of the Bench to para 32 of the order which reads as under:- “32. But this is an entirely different case. Whether a particular receipt is of the nature of income and falls within the charge of section 4 is a question of law which has to be decided by the Court on the basis of the provisions of the Act and the interp…

The DCIT, Circle-3(1)(1), Ahmedabad vs. M/S. Pushpak Bullions Pvt. Ltd., Ahmedabad

In the result, appeal filed by the Revenue is dismissed

ITA 807/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad25 Apr 2019AY 2010-11

Bench: Shri Mahavir Prasad & Shri Waseem Ahmed)

For Appellant: Shri O.P. Sharma, CIT/DRFor Respondent: Shri A.C. Shah, A.R

Section 10A

…,74,153/- made on account of disallowance u/s.10AA of the Act on interest income. 4. The Ld. CIT(A) has erred in law and on facts by not following the decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chimicals &. Fertilizers Ltd. v/s CIT (227 ITR 172) in which interest on FDs was held to be income from other sources. 5. On the facts and circumstances of the case, the Ld. Commissioner of Income Tax(A) ought to have upheld the order of the Assessing Officer. 6. It is, therefore, prayed that the order of the Ld. Commissioner of Income Tax(A) may be set-aside and that of the Assessing Officer be…

Shri Ram Das Sonkia, Jaipur vs. Deputy Commissioner of Income Tax, Jaipur

In the result, appeal of the assessee is allowed

ITA 295/JPR/2018[2015-16]Status: DisposedITAT Jaipur11 Apr 2019AY 2015-16

For Appellant: Shri S.R. Sharma (CA) &For Respondent: Shri Varinder Mehta (CIT)

Section 132(1)Section 132(4)Section 139(1)Section 143(3)Section 153B(1)(b)Section 271ASection 274

…does not mean that until and unless the assessee commences its business, its income from any other source will 38 Shri Ram Das Sonkia, Jaipur. not be taxed as held by the Hon’ble Supreme Court in the case of Tuticorin Alkali & Chemicals Ltd. Vs. CIT (1997) 227 ITR 172 (SC). It has been further held that when the question is whether a receipt of money is taxable or not or whether certain deduction from that receipt is principles of law and not in accordance with accountancy practice. Further, the Hon’ble Apex Court held that the question as to whether a principal receipt is of the nature of income and falls wit…

Shri Krishna Yadav, Jaipur vs. Deputy Commissioner of Income Tax, Jaipur

In the result, appeal of the assessee is allowed

ITA 987/JPR/2017[2014-15]Status: DisposedITAT Jaipur26 Mar 2019AY 2014-15

Bench: Or At The Time Of Hearing.”

For Appellant: Shri S.L. Poddar (Advocate)For Respondent: Shi B.K. Gupta (CIT)

Section 143(3)Section 153ASection 271A